November 10, 2015

Crude the Gift That Keeps Giving , Chart – $CL

crude_CL Crude continues to pay the early bird with a pre-opening move from the sell side followed by a sweet reversal shark attack from the buy side.  As they say, “If it walks like a duck, quacks like a duck..”, Tuesday’s opening moves had a purpose!  A purpose that is best left to someone else.  Remember, caring about the who, what, where, when and how of a move usually takes longer than the move.  Attempting to determine why a seller is selling or a buyer is buying can be best compartmentalised next to fear and doubt and replaced with moving averages and pivot points!

Voiding emotions and actually trading without emotion is a big key – and I do mean big!  When emotion comes into play – focus is diverted and what should have produced a 10 maybe 15 ticks winner turns into a 50 to 65 tick scream fest loser.  On Tuesday, though, it was enjoyable to employ strategy and  stand back to see the “bigger” market find its level and bring in the volume to change direction.  Squeezes in either direction created by the constant “baiting” of the algorithms presented some wonderful “gnat on the elephant’s ass” trading opportunities and for those trading an hour pre-market were rewarded with a net +42 tick slide to an early low.

This was followed by feeding frenzy to the upside that captured +76 ticks on strategy, (signal to signal) based trades. The balance of the trading session continued to give making trading the chop easier to handle.  On the day, strategy grossed +147 ticks allowing 25 ticks for slippage and commissions the net was +122.

Check out today’s chart for additional discussion and trades: